Following record highs in August, Bitcoin has settled near $110,000, while Ethereum trades between $4,300 and $4,500. Derivatives desks show heightened demand for put options, indicating traders’ apprehension over potential inflation surprises and their hedging against a potential Fed rate cut pause. While the market anticipates September’s rate trim as virtually certain, with a small chance of a half-point move being more likely. Implied volatility has risen but analysts at Derive predict most of the excitement will come later in 2023, with Bitcoin potentially reaching $140,000 by December and Ethereum following suit to break past $7,000. Spot Bitcoin ETFs saw over $360 million inflows on September 8th while Ether products experienced redemptions of nearly $100 million. Yet on-chain data suggests ETH isn’t being dumped – a significant amount of coins left exchanges last week for staking and treasury allocations. Q4 historically provides strong market momentum, with October and November often seeing Bitcoin rallies. If the Fed confirms a dovish path and Treasury supply remains stable, analysts believe history could repeat itself.